LONDON (Alliance News) - Gulf Marine Services PLC shares dropped slightly on the first morning of conditional dealing on the London Stock Exchange main market after it had priced its initial public offering at 135 pence per share, giving it an initial market capitalisation of GBP472 million.
Gulf Marine Services shares were down 0.4% at 134.5 pence by 1030 GMT on Friday. It offered 122.7 million shares, meaning it raised gross proceeds of GBP66.9 million. The value of shares sold by selling shareholders is expected to be GBP98.8 million assuming no exercise of an over-allotment option.
Gulf Marine is the operator of one of the largest independent self-propelled Self Elevated Support Vessel or "SESV" fleets globally, with a focus on the Middle East, North Africa region and Northwest Europe. It operates a core fleet of nine SESVs, which are four-legged self-propelled vessels with a large deck space, crane capacity and accommodation facilities that can be adapted to the requirements of the company's clients.
It has been operating since 1977 and was acquired by its current shareholders in 2007. Revenues grew from USD106.9 million in 2011 to USD184.3 million in 2013, representing a compound annual growth rate of 31.3%.
The company services a blue-chip client base through long-term contracts, with an average current contract duration of 2.8 years as at December 31, 2013, with an average utilisation of 90% from 2008-2013. The company has a current order book of USD434 million including options to extend.
Gulf Capital PJSC, one of the leading alternative asset management firms in the Middle East, through its subsidiaries, Green Investment Commercial Investments LLC and Ocean Investments Trading LLC, Horizon Energy LLC and Al Ain Capital LLC are each expected to sell a proportion of their shareholding in the offer.
Gulf Marine said that following admission, Gulf Capital PJSC is expected to hold 51.9% of the shares, Horizon Energy LLC should hold 6.5% of the shares and Al Ain Capital LLC should hold 6.5% of the shares, assuming no exercise of an over-allotment option.
BofA Merrill Lynch and Barclays Bank PLC are joint global co-ordinators, joint bookrunners and joint sponsors, JP Morgan Securities PLC is joint bookrunner and Abu Dhabi Commercial Bank PJSC and Abu Dhabi Islamic Bank PJSC are co-lead managers.
"The increased profile and new funds will now provide the scope to exploit the market opportunity that lies before us more swiftly than would previously have been possible," Chief Executive Duncan Anderson said in a statement.
In February, the company said it plans to add up to a further six vessels to its fleet over the next three years as the company continues to target long term client contracts and to pursue strategies to expand its market positions.
From 2014 onwards, the company plans to pay annual dividends based on an initial targeted payout ratio of 10% of the company's consolidated post-tax profit from its ongoing business.
Conditional dealings in its shares started Friday. Unconditional dealings are expected to start on March 19.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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Gulf Marine Services (GMS)